• ASX up by nearly 1% on Tuesday
  • Miners and energy stocks gained as China cuts its rates
  • UBS has raised its forecast for lithium prices


Aussie stocks lifted close to 1% despite Wall Street closing for America’s Juneteenth holiday. The ASX was led by strong gains in energy, real estate and mining sectors.

Energy was the best in show despite the sluggish performance in crude prices.

The benchmark WTI remains below US$70 even as China’s central bank cut its interest rates today, the first time in 10 months.

The PBOC cut its loan prime rate by 10bp from 3.65% to 3.55%, but the market is still awaiting China’s rollout of a stimulus package meant to prop up key sectors. China-sensitive stocks, such as BHP (ASX:BHP), rose on the rate cuts announcement.

UBS has meanwhile raised its forecast for lithium prices, sending companies like Pilbara Minerals (ASX:PLS) and IGO (ASX:IGO) higher.

Lake Resources (ASX:LKE) fell another 22% today, extending its 20% loss on Monday.

Lake sank after reporting a disappointing operational update on its Kachi Brine Project in Argentina yesterday.

Lake had previously said that it was targeting 50,000tpa of production by 2027, but has now decided to adopt a two-stage development schedule – 25,000tpa by 2027 and another 25,000tpa by 2030. Investors clearly did not like the fact they had to wait for another three years.

Elsewhere, the RBA minutes of the June monetary policy meeting suggests that policymakers almost didn’t hike rates in June.

The minutes revealed that the Board had weighed up two options – leaving rates on hold, or hiking by 25bp to 4.1%. They decided to go with the latter despite both sets of the arguments being “finely balanced”.



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Leo Lithium (ASX:LLL) climbed after reporting a substantial increase in the Goulamina Resource to 211 Mt at a grade of 1.37% Li2O.

The Measured and Indicated Mineral Resource categories increased in tonnage by 26% to 102.3 Mt at a grade of 1.45% Li2O. Leo says there is scope for further exploration potential as large parts of the resource remain open along strike and at depth.

Woodside Energy (ASX:WDS) rose after saying yes to a massive $US7.2 billion oil project off Mexico’s north-east coast.

“The expected returns from the development exceed Woodside’s capital allocation framework targets and deliver enduring shareholder value. First oil is targeted for 2028,” said the company.



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The Star Entertainment (ASX:SGR) fell after reacting to a media release by the NSW Treasurer, Daniel Mookhey, regarding casino duty rate increases proposed (but not implemented) by the former Treasurer in December 2022 in the lead up to the NSW election.

The Star maintains that the duty increases as proposed by the former Treasurer are not sustainable and are flawed in their design.

Star’s CEO Robbie Cooke said: “This proposed duty increase was policy on the run by the former Treasurer, was ill-conceived with no consultation and had no regard to the capacity of our Sydney operation to afford the impost.

“If implemented as originally proposed, the additional duty would significantly challenge the economic viability of the Sydney business and put the jobs of up to 4,000 hard-working Sydney employees in jeopardy.”